A staggering revelation has emerged from the National Insurance Commission (NAICOM), indicating that a mere three percent of Nigerians possess insurance coverage, while a staggering 97 percent remain without any form of insurance, often due to a lack of awareness or inadequate education on the advantages of insurance.
For context, Nigeria’s current population is estimated to be around 200 million, meaning that approximately 197 million individuals lack insurance coverage.
Dr. Usman Jankara, NAICOM’s Assistant Director of Corporate Strategy and Special Duties, shared these findings during a presentation at a journalists’ seminar held in Uyo, Akwa Ibom State.
His presentation, titled “Insurance Sector and the Nigerian Economy: Impact, Challenges and the New Frontiers,” shed light on the pressing issue.
Dr. Jankara noted that the number of insured individuals is only three million. He commented, “Considering the number of insured individuals, the figure stands at three million.
As of the last year when the data was collected, Nigeria’s population was estimated at 200 million.”
In a span of time from 2015 to the present, Dr. Jankara pointed out that the industry’s gross premium income has grown significantly, from N282 billion in 2015 to N736 billion.
This translates to an average growth rate of 15 percent. While acknowledging that there is room for improvement, he highlighted the progress made by the insurance sector.
Dr. Jankara further illustrated, “From 2015 to 2022, assets experienced remarkable growth, soaring from N917 billion to N2.32 trillion, representing an extraordinary increase of approximately 60 percent.
The insurance penetration rate, indicating insurance coverage relative to the Gross Domestic Product (GDP), stands at a mere 0.4 percent, and the insurance density, which measures the proportion of insured Nigerians, rests at 1.5 percent.”
This growth trend is evident in the figures shared by Dr. Jankara. Life insurance, for instance, escalated from N86 billion in 2015 to N309.1 billion in 2022. Likewise, non-life insurance witnessed an upsurge from N198.3 billion in 2015 to N417.3 billion in 2022.
Mr. Sunday Thomas, CEO of NAICOM, conveyed in his opening remarks that endeavors are underway to deepen awareness about insurance and foster broader adoption, highlighting the importance of bridging the gap between the current low coverage and the potential benefits of insurance for Nigerian citizens.
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